Meta Platforms Inc began 2025 on a strong note, posting a net profit of USD16.64 billion for the first quarter ended March 31, a 35 percent increase compared to USD12.37 billion in the same quarter last year.
The tech giant's total revenue grew 16 percent year-over-year to USD42.31 billion, buoyed by a 10 percent increase in the average price per ad and a 5 percent rise in ad impressions across its Family of Apps, which include Facebook, Instagram, WhatsApp, and Messenger.
Advertising revenue alone accounted for USD41.39 billion, up from USD35.64 billion in Q1 2024.Meta’s operating income rose to USD17.56 billion, representing a 27 percent year-over-year increase, while its operating margin improved from 38 percent to 41 percent.
Meanwhile, diluted earnings per share (EPS) jumped 37 percent to USD6.43, compared to USD4.71 a year ago.
CEO of Meta, Mark Zuckerberg credited the results to solid business momentum and ongoing product developments.
“We’ve had a strong start to an important year, our community continues to grow and our business is performing very well,” he said.
Meta also reported that its Family daily active people (DAP) averaged 3.43 billion in March 2025, an increase of 6 percent year-over-year, reflecting the company's continued global reach and engagement.
On the financial side, total costs and expenses rose 9 percent to USD24.76 billion, driven primarily by investments in research and development, which reached USD12.15 billion, up from USD9.98 billion in the same quarter last year. Capital expenditures, including principal payments on finance leases, totaled USD13.69 billion.
Meta also returned capital to shareholders through USD13.4 billion in share repurchases and USD1.33 billion in dividends and dividend equivalents during the quarter.
Looking ahead, Meta expects second quarter revenue to be in the range of USD42.5 billion to USD45.5 billion, with foreign exchange expected to provide a modest 1 percent tailwind.
Full-year total expenses are now projected at USD113 to USD118 billion, slightly lower than earlier estimates, while capital expenditure guidance has been raised to USD64 to USD72 billion, reflecting additional investment in data centers and AI infrastructure.
However, Meta also warned of potential risks, particularly in Europe, where the company may be required to modify its ad-free subscription model to comply with the EU’s Digital Markets Act (DMA), a change that could negatively impact user experience and revenue as early as the third quarter.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
